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Company Quarterly Earnings Update – DXS VN – 9M 2024
Summary of 9M/2024 results and outlook of Dat Xanh Real Estate Services (DXS VN)
- The real estate market is showing signs of recovery, supported by easing legal constraints and sustained demand. In 9M/2024, the government approved 61 new projects (+30% y/y), introducing over 40,000 units (+5% y/y) nationwide. However, a mismatch persists between supply and demand, as supply remains concentrated in the high-end segment, while demand is centered on affordable and mid-end housing.
- DXS reported revenue of VND 1,818 bn (+21.2% y/y), supported by strong brokerage growth, which surged 100.4% y/y to VND 843 bn on 4,900 transactions (+115.4% y/y). However, property investment revenue declined 22.1% y/y to VND 786 bn, reflecting slow sales in the hospitality segment, particularly for Regal Legend in Quang Binh. SG&A expenses grew at a slower rate than revenue, improving the operating margin to 17.9%, and net profit reached VND 104 bn, recovering from a loss of VND 54 bn in 9M/2023. The company maintains low financial leverage with a D/E ratio of 0.24x.
- In December, the residential market is set for a significant increase in supply, with the high-end segment continuing to dominate, accounting for 70% of new launches, primarily concentrated in Ho Chi Minh City. Key projects include Masteri Grand View (VND 130 mn/sqm), Eaton Park (VND 140 mn/sqm), Elysian (VND 100 million/sqm), and The Opus One (starting from VND 80 mn/sqm), etc. Meanwhile, neighboring provinces such as Binh Duong and Long An are offering apartments at an average price of VND 30 mn/sqm, a more affordable option likely to attract homebuyers seeking alternatives outside HCMC, supported by ongoing infrastructure improvements.
- In Q4 2024, DXS is expected to broker approximately 1,600 transactions. However, weak demand in the hospitality property investment segment is expected to result in a slight decrease in revenue. Total 2024 revenue and profit is forecasted to mark a turnaround from 2023 loss. For 2025, DXS is doing brokerage for approximately 40 projects nationwide, providing a solid foundation for a recovery in number of transactions. With these projects in the pipeline, DXS is projected to achieve around 7,500 transactions in 2025. In the property investment segment, the company will focus on completing the Regal Legend and selling remaining units from ongoing projects, with no new developments planned.
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